2003: Japan stocks are undervalued

Consensus said:

Japanese stocks remain unattractive years after the crisis

We said:

This Monthly Review documents our February 27th seminar debate with Andrew Smithers and Stephen Wright. The motion was “Japanese business profits are understated and the Tokyo stock market is good value” A paradigm shift from fast to slow GDP growth and demographic disaster have added to Japan’s post-bubble trauma. But the issue now is “top line” versus “bottom line”. Charles Dumas shows that Japanese companies have highly profitable operations. Diana Choyleva highlights better large than (unquoted) small company post-bubble adjustment.

Outcome:

Japanese stocks recover from spring 2003 through to global financial crisis